On Thursday the California Supreme Court agreed to hear a lawsuit against the state over new redevelopment laws passed as part of the state's budget package.

California Redevelopment Assn. v. Matosantos, filed July 18, is a petition challenging the constitutionality of the recent budget bills, AB 1x 26 and AB 1x 27.

AB 1x 26 eliminates redevelopment agencies, while AB 1x 27 allows redevelopment agencies to continue to operate if they participate in the state's voluntary alternative redevelopment program, in which they make an annual payment to the state.

Lake County's redevelopment agencies – the county's, as well as those in the cities of Lakeport and Clearlake – are set to lose a total of just over $2.3 million to the state in the voluntary program's first year because of the changes in redevelopment, according to figures provided by local government officials.

On Thursday the California Supreme Court also granted part of the stay requested by the California Redevelopment Association and League of California Cities.

The stay, in effect, prevents redevelopment agencies from being forced to make the payments until the court rules on the merits of the case.

“We’re very gratified that the California Supreme Court has agreed to take our case, issued the stay we requested to preserve the status quo, and that it is moving forward on an expedited basis,” said Chris McKenzie, Executive Director, League of California Cities. “The redevelopment bills are unconstitutional, violating Proposition 22 and other provisions of the state constitution. We look forward to presenting our case to the Court very soon. We’re confident the State Supreme Court will ultimately strike down this unconstitutional legislation that ignores the voters’ will and that will destroy local economies.”

The court established an expedited briefing schedule designed to facilitate oral argument as early as possible in 2011, and a decision before Jan. 15, 2012, the date when redevelopment agencies are required to make their first payment.

Among many claims, the central claim in the lawsuit is that AB 1x 26 and AB 1x 27 violate Proposition 22, the constitutional amendment passed by 61 percent of California voters in November 2010.

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